VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 7, 2017) - Snobro Enterprises Inc. ("Snobro" or the "Company") (TSX VENTURE:SIQ.P) is pleased to announce that it has entered an exclusive Technology Purchase and Employment Agreement effective June 1, 2017 (the "Agreement") with businessman and inventor Gautier Arcouette ("Arcouette") of Mansonville, Quebec.
The Agreement focuses on the technology purchase and development, commercialization and production of proprietary products under patent application numbers CA 2,919,402 and PCT/CA2017/050110 filed on February 1, 2016 and February 1, 2017 by Arcouette for devices, titled "Foldable Snow Bike" and "Snow Bike".
Prototype snowbikes, featuring the technologies which are the basis of the patent applications, have been conceived, built and tested by Arcouette in both extreme and recreational snow environments. Arcouette inherited his inventive/creative mind from his grandfather who participated in the early development of well known snow vehicles and was one of the first in the world to commercialize roto-molded kayaks and sailboards. Arcouette has grown up snowboarding and surrounded by entrepreneurs and innovation related to recreational products.
Snobro plans to utilize these technologies to produce and market snowbike products capable of generating multi-million dollar revenue streams from the global snowboard and ski markets. The target markets for snowbike products include skiers, snowboarders, cyclists and anyone seeking a new way to ride the snow. There are over 9 million alpine skiers and approximately 5.2 million snowboarders in North America alone, with US equipment sales of approximately $925 million, annually (2015/16)*.
As part of the Agreement, Snobro will pay Arcouette as an employee of the Company an annual gross salary of $60,000. The Salary is payable in accordance with Snobro's standard salary payment schedule.
In consideration for the transfer of the patent rights, the following payments are to be paid within thirty (30) days of achievement of the specific milestone referenced below provided, however, that Arcouette remains a full time employee of Snobro at the time a relevant milestone is achieved:
(i) Twenty thousand Dollars ($20,000) on TSX Venture Exchange ("TSX-V") approval ("Milestone 1");
(ii) Twenty thousand Dollars ($20,000) on the grant of a new patent arising out of the filed patent applications ("Milestone 2"); and
(iii) Twenty thousand Dollars ($20,000) on the achievement of net sales of snowbike products totalling $1,000,000 ("Milestone 3"); and
A royalty rate of two percent (2.0%) on the net sales of snowbike products earned by Snobro, is to be paid within thirty (30) days of the end of each calendar quarter.
As further consideration for transfer of the patent rights, and subject to achievement of the milestones set out above, Snobro will issue two million (2,000,000) Common Shares of Snobro to be released as follows:
(i) Three hundred thousand (300,000) Common Shares within 5 business days of achievement of Milestone 1;
(ii) Seven hundred thousand (700,000) Common Shares within thirty (30) days of the achievement of Milestone 2; and
(iii) One million (1,000,000) Common Shares to be issued within thirty (30) days of the achievement of Milestone 3.
Peter Hughes, CEO of the Company comments that: "The principal business of the Company has been the identification and evaluation of assets or businesses with an objective of completing a Qualifying Transaction (the "QT"), as pursuant to TSX-V policies. We believe the technology being acquired has the potential to generate multi million-dollar revenue streams. The proposed QT is subject to approval by the TSX-V in accordance with its policies and guidelines. The common shares of Snobro have been halted from trading while TSX-V assesses the proposed transaction".
Arcouette is at arm's length to the Company, and while he will be added to the Snobro team as Chief Technology Officer, the remainder of the directors and officers will remain. As the QT is with an arm's length party, shareholder approval is not required. As well, the Company does not require any additional financing to carry out its business plans for at least the first year and probably beyond. The Company plans to further develop and commercialize for sale to consumers snowbike products based on the technologies acquired in this transaction.
Completion of the transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance and if applicable pursuant to TSX-V Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX-V has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
*Reference (1): snowsports.org
ON BEHALF OF THE BOARD
Peter Hughes, President, Director and Promoter
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's listing of its common shares on the Exchange. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, including that we will complete our QT; that we have sufficient capital to carry out our business plans for at least a year; that the patent applications will result in patent grants; that we can commercialize snowbike products for sale to consumers; and that the technologies have multi-million dollar revenue potential . Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including that we may not meet TSX-V requirements; commercialization may take longer or be more expensive than expected; competitors may produce better or cheaper products; products may not sell as well as expected; patent applications may not be granted or, if granted, may not adequately protect our technologies; and other risks related to factors beyond the control of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.
This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
NEITHER TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact Information:
Telephone: 604-802-7372
Email: petehughes@me.com